Activity in asset-based lending (ABL) in the fourth quarter was “steady”, with the industry remaining “resilient and well-positioned” despite an uncertain macroeconomic environment, according to a new survey.
The Secured Finance Network’s 2025 Asset-Based Lending survey for the fourth quarter revealed that ABL commitments and outstandings remained stable overall.
Read more: Hilco Capital expands asset-based lending platform
The trade association said the results came amid several “high-profile” bankruptcies in private credit and continued tightening in traditional bank lending, as well as a more cautious operating environment given the ongoing uncertainty around interest rates, inflation and economic growth.
The trade association reported that total commitments for banks increased 0.5 per cent from the prior quarter, while total commitments for non-banks rose 5.5 per cent.
Total outstandings for banks declined 5.1 per cent quarter over quarter, which Secured Finance Network said reflected “seasonal paydowns”, while outstandings for non-banks grew 12.6 per cent.
The survey, conducted between late January and mid-February, found that banks were “slightly more optimistic” than non-banks about industry conditions over the next quarter, pointing to improved expectations for business conditions, demand, and portfolio performance.
Read more: Pollen Street raises £2.5bn for ABL fund
“While economic growth slowed in the fourth quarter, the asset-based lending industry remains resilient and well-positioned,” Rich Gumbrecht, chief executive officer of Secured Finance Network, said.
The trade association also identified strong growth in factoring volume in 2025.
According to its year-end factoring survey, factoring volume increased by 16.6 per cent among respondents reporting in both the second half of 2024 and the same period in 2025, with both US and international activity contributing to the growth.
“Despite a complicated economic backdrop and increased volatility across credit markets, secured finance continues to demonstrate its strength and adaptability,” added Gumbrecht.
“Asset-based lenders and factors are stepping in where capital is needed most, providing stability, flexibility, and liquidity to businesses navigating uncertainty. As we look ahead, the industry remains well-positioned to support growth and respond to evolving market dynamics.”
Founded in 1944, the Secured Finance Network has more than 1,000 member organisations throughout the US, Europe, Canada and globally.
Read more: Blue Owl inks $2.9bn for asset-based special opps fund
